REVIEW OF JEOPARDY LEVY AND ASSESSMENT PROCEDURES.

SEC. 6237. REVIEW OF JEOPARDY LEVY AND ASSESSMENT PROCEDURES. (a) In General.—Subsection (a)(1) of section 7429 of the 1986 Code (relating to review of jeopardy assessment procedures) is amended— (1) by inserting “or levy is made under section 6331(a) less than 30 days after notice and demand for payment is made under section 6331(a),” after “6862,”, and (2) by inserting “or levy” after “such assessment”. (b) Administrative Determinations.—Paragraph (3) of section 7429(a) of the 1986 Code (relating to redetermination by the Secretary) is amended to read as follows: “(3) Redetermination by secretary.— After a request for review is made under paragraph (2), the Secretary shall determine— “(A) whether or not— “(i) the making of the assessment under section 6851, 6861, or 6862, as the case may be, is reasonable under the circumstances, and “(ii) the amount so assessed or demanded as a result of the action taken under section 6851, 6861, or 6862 is appropriate under the circumstances, or “(B) whether or not the levy described in subsection (a)(1) is reasonable under the circumstances.” (c) Tax Court Review Jurisdiction.—Subsection (b) of section 7429 of the 1986 Code is amended to read as follows: “(b) Judicial Review.— “(1) Proceedings permitted.— Within 90 days after the earlier of— “(A) the day the Secretary notifies the taxpayer of the Secretary’s determination described in subsection (a)(3), or “(B) the 16th day after the request described in subsection (a)(2) was made, the taxpayer may bring a civil action against the United States for a determination under this subsection in the court with jurisdiction determined under paragraph (2). “(2) Jurisdiction for determination.— “(A) In general.—Except as provided in subparagraph (B), the district courts of the United States shall have exclusive jurisdiction over any civil action for a determination under this subsection. “(B) Tax court.—If a petition for a redetermination of a deficiency under section 6213(a) has been timely filed with the Tax Court before the making of an assessment or levy that is subject to the review procedures of this section, and 1 or more of the taxes and taxable periods before the Tax Court because of such petition is also included in the written statement that is provided to the taxpayer under subsection (a), then the Tax Court also shall have jurisdiction over any civil action for a determination under this subsection with respect to all the taxes and taxable periods included in such written statement. 102 STAT. 3742 “(3) Determination by court.— Within 20 days after a proceeding is commenced under paragraph (1), the court shall determine— “(A) whether or not— “(i) the making of the assessment under section 6851, 6861, or 6862, as the case may be, is reasonable under the circumstances, and “(ii) the amount so assessed or demanded as a result of the action taken under section 6851, 6861, or 6862 is appropriate under the circumstances, or “(B) whether or not the levy described in subsection (a)(1) is reasonable under the circumstances. If the court determines that proper service was not made on the United States or on the Secretary, as may be appropriate, within 5 days after the date of the commencement of the proceeding, then the running of the 20-day period set forth in the preceding sentence shall not begin before the day on which proper service was made on the United States or on the Secretary, as may be appropriate. “(4) Order of court.—If the court determines that the making of such levy is unreasonable, that the making of such assessment is unreasonable, or that the amount assessed or demanded is inappropriate, then the court may order the Secretary to release such levy, to abate such assessment, to redetermine (in whole or in part) the amount assessed or demanded, or to take such other action as the court finds appropriate.” (d) Venue.—Section 7429(e) of the 1986 Code (relating to venue) is amended to read as follows: “(e) Venue.— “(1) District court.—A civil action in a district court under subsection (b) shall be commenced only in the judicial district described in section 1402(a) (1) or (2) of title 28, United States Code. “(2) Transfer of actions.—If a civil action is filed under subsection (b) with the Tax Court and such court finds that there is want of jurisdiction because of the jurisdiction provisions of subsection (b)(2), then the Tax Court shall, if such court determines it is in the interest of justice, transfer the civil action to the district court in which the action could have been brought at the time such action was filed. Any civil action so transferred shall proceed as if such action had been filed in the district court to which such action is transferred on the date on which such action was actually filed in the Tax Court from which such action is transferred.” (e) Conforming Amendments.— (1) Section 7429(c) of the 1986 Code (relating to extension of 20-day period where taxpayer so requests) and section 7429(f) (relating to finality of determination) are amended by striking out “district” each place it appears. (2) Section 7429(g) of the 1986 Code (relating to burden of proof) is amended— (A) by inserting “the making of a levy described in subsection (a)(1) or” after “whether” in paragraph (1), (B) by striking out “termination” in the heading of paragraph (1) and inserting in lieu thereof “levy, termination”, and 102 STAT. 3743 (C) by striking out “an action” and inserting in lieu thereof “a proceeding” in paragraphs (1) and (2). (3) The heading of section 7429 of the 1986 Code is amended by inserting “LEVY OR” after “JEOPARDY”. (4) The table of sections for subchapter B of chapter 76 of the 1986 Code is amended by inserting “levy or” after “jeopardy” in the item relating to section 7429. (f) Effective Date.—The amendments made by this section shall apply to jeopardy levies issued and assessments made on or after July 1, 1989.